Sensex, Nifty touch record levels as rupee recovers
Positive global cues on easing trade protectionist measures along with an appreciation in the Indian rupee lifted the key equity indices — S&P BSE Sensex and the NSE Nifty 50 — to settle at fresh high levels on Monday.
On a intra-day basis, the BSE Sensex touched a fresh high of 38,340.69 points, while the Nifty50 climbed a peak of 11,565.30 points.
Index-wise, the wider NSE Nifty50 closed at 11,551.75 points, up 81 points or 0.71 per cent from its previous close of 11,470.75 points.
The benchmark BSE Sensex which had opened at 38,075.07 points, closed at 38,278.75 points, higher by 330.87 points or 0.87 per cent from its previous close of 37,947.88 points. It touched an intra-day low of 38,050.69 points.
In the broader markets, the S&P BSE Mid-cap ended higher by 1.05 per cent and the S&P BSE Small-cap rose by 0.14 per cent.
The BSE market breadth was tilted towards the bulls with 1,437 advances and 1,307 declines.
“Positive global stocks, optimism over a trade resolution between the USA and China and strong institutional activity at home fuelled investor sentiment and pushed the bourses to close the day with gains,” Abhijeet Dey, Senior Fund Manager for equities at BNP Paribas Mutual Fund.
The two economic giants are expected to hold lower-level trade talks this month, offering hope that they might resolve an escalating tariff war, Dey added.
Accordingly, major Asian markets closed on a positive note, barring the Nikkei and Straits indices and European indices including FTSE 100, DAX and CAC 40 traded in the green, said Deepak Jasani, Head of Retail Research at HDFC Securities.
Besides, global cues, the appreciation in Indian rupee supported the indices’ upward movement.
On Monday, the Indian rupee appreciated by 33 paise to settle at 69.83 per US dollar, from its record closing low of 70.16 per dollar on the previous trade session.
“The rupee has appreciated today as the US dollar index has witnessed profit booking,” Anand Rathi Shares and Stock Brokers’ Research Analyst Rushabh Maru told IANS.
“There is an optimism in the market that US and China would find a solution for ongoing trade conflict. So that has also supported the rupee.”
Investment-wise, provisional data with exchanges showed that foreign institutional investors sold scrip worth Rs 483.04 crore and the domestic institutional investors purchased stocks worth Rs 593.22 crore.
Sector-wise, the S&P BSE capital goods index rose 668.41 points, the metal index was up 332.36 points and the auto index rose by 244.22 points.
In contrast, the S&P BSE IT index declined by 188.84 points, consumer durables fell 127.24 points and Teck (entertainment, technology and media) index ended lower by 76.07 points from its previous close.
The major gainers on the Sensex were Larsen and Toubro, up 6.74 per cent at Rs 1,323.95; Tata Motors (DVR), up 5.74 per cent at Rs 143.80, Tata Motors, up 4.74 at Rs 269.55; ONGC up 3.34 per cent, at Rs 168.55; and Tata Steel, up 3.24 per cent at Rs 599.40 per share.
The majors losers were Infosys, down 3.22 per cent at Rs 1,385.20; Maruti Suzuki, down 0.79 per cent at Rs 9,075.90; ICICI Bank, down 0.50 per cent at Rs 338.35; Axis Bank, down 0.46 per cent at Rs 624.20; and Hindustan Unilever, down 0.30 at Rs 1,775.40 per share.
The BSE Sensex rose over 100 points in early trade today, continuing its winning spree for the 10th straight session, on positive global leads and sustained buying by domestic institutional investors.
The 30-share index moved higher by 110.13 points, or 0.32 per cent, to 34,505.19. The gauge had gained 1,375.99 points in the previous nine sessions.
All the sectoral indices, led by metal and healthcare stocks, were trading in the positive territory. The broader Nifty too opened higher by 30.70 points, or 0.29 per cent, at 10,579.40.
Brokers said continuous buying by domestic institutional investors (DIIs) and retail investors following a firm trend at other Asian bourses, overnight gains on Wall Street, and encouraging economic data strengthened market sentiment.
Major early gainers were Wipro, Yes Bank, Adani Ports, ITC, Asian Paint, Tata Motors, Bharti Airtel, ONGC, Sun Pharma, Tata Steel, TCS, Maruti Suzuki and RIL rising up to 1.47 per cent.
Meanwhile, on a net basis, DIIs bought shares worth Rs 723.81 crore, while foreign funds sold shares to the tune of Rs 951.39 crore yesterday, provisional data showed.
Brokers said continuous buying by domestic institutional investors (DIIs) and retail investors following a firm trend at other Asian bourses, overnight gains on Wall Street, and encouraging economic data strengthened market sentiment. Major early gainers were Wipro, Yes Bank, Adani Ports, ITC, Asian Paint, Tata Motors, Bharti Airtel, ONGC, Sun Pharma, Tata Steel, TCS, Maruti Suzuki and RIL rising up to 1.47 per cent.
Globally, Japan’s Nikkei moved up 1.29 per cent and Hong Kong’s Hang Seng gained 0.27 per cent in early trade today. Shanghai Composite Index, however, shed 0.36 per cent. The US Dow Jones Industrial Average ended 0.87 per cent higher in yesterday.
SEBI gets teeth to act against exchanges, market outfits
As part of the proposed amendments in the Finance Bill 2018, the government has given more power to the Securities and Exchange Board of India- SEBI to impose monetary penalties on important market intermediaries such as stock exchanges and clearing corporations and also act against newer categories of participants likes investment advisers, research analysts, real estateinvestment trusts (REITs) and infrastructure investment trusts (InvITs).
The proposed amendments to the SEBI Act and the Securities Contracts (Regulation) Act now allow the capital markets regulator to impose a monetary penalty of at least ₹5 crore on stock exchanges, clearing corporations and depositories for non-compliance with regulatory norms.
The penalty can go up to ₹25 crore or three times the amount of gains made out of such failure or non-compliance. Hitherto, SEBI only had the power to censure or warn against any form of failure.
Incidentally, the new powers come at a time when the National Stock Exchange is under the SEBI scanner in the co-location matter, with regard to which it has been alleged that a certain set of brokers were given preferential access allowing them to make undue gains.
The amendments also allow SEBI to act against entities that furnish false or incomplete information to the regulator. Earlier, it could act only if the entity did not furnish any information.
The whole-time members of SEBI have also been given additional powers to act against wrongdoers. “[Powers to] punish for filing of false, incorrect or incomplete information, return, report, books or other documents was very much needed for SEBI,” said Sumit Agrawal, a regulatory lawyer and an ex-SEBI official.
Quality of disclosure
“It will increase the quality of disclosure rather than just tick-the-box approach. Twin-fold penalty powers with the wholetime member and adjudicating officer (AO) is welcome for efficient use of human resources. Minimum penalty of ₹5 crore proposed on market intermediaries such as stock exchanges, clearing corporations and depositories [has emerged] for the first time and is likely to be used rarely,” he added. This is not the first time that the government has used the Union Budget to empower the capital market regulator.
While presenting the Budget for 2015-16, finance minister Arun Jaitley proposed the merger of the then commodity market regulator Forward Markets Commission with SEBI. This followed the ₹5,600 crore settlement scam at the National Spot Exchange Ltd., which came out in the open in July 2013.
“Since things are more electronic now, it is becoming easier for regulators to keep track of happenings in the market, more so [to track] non-compliance,” said Pranav Jain, partner, MDP & Partners, a law firm.
“India is giving exposure to a lot of hybrid funds such as AIF, InvIT and REITs. Though there were applicable laws for their incorporation, management and functioning, there was a need felt to impose deterrents. In the long run, it is expected that more investors will be investing in such funds and will have investment exposure. Hence such a deterrent is necessary,” he explained.
₹1 lakh per day penalty
Incidentally, REITs and InvITs along with research analysts and investment advisers, will have to be more careful now as the Finance Bill allows SEBI to impose a penalty of up to ₹1 lakh per day for the period of non-compliance.
Interestingly, the government has also allowed the regulator to pursue cases against the legal representatives of defaulters if in case a defaulter passes away during the course of regulatory proceedings.
“Provided that, in case of any penalty payable under this Act, a legal representative shall be liable only in case the penalty has been imposed before the death of the deceased person,” the Finance Bill states.
Finance Minister presents Union Budget 2018-19 in Parliament
Finance Minister Arun Jaitley presents his Budget for the year 2018-19 in Parliament. The budget is largely focused on uplift of agricultural sector, along with major push to healthcare and education sectors in the country. The Budget of 2018 is India’s first after the implementation of the Goods and Services tax (GST) in June last year. Below are Highlights of Budget 2018-19.
Highlights of the Budget
* PAN to be used as Unique Entity Number for non- individuals from April 1.
* Govt makes PAN mandatory for any entity entering into a financial transaction of Rs 2.5 lakh or more.
* This budget will accelerate economic growth, it is focused on all sectors: PM Modi
* Prime Minister Narendra Modi praises his finance minister Arun Jaitley for delivering a budget that is “farmer friendly, common citizen friendly, business environment-friendly and development friendly.”
* Govt’s health scheme to cover 10 crore poor families is world’s largest government-funded health protection scheme.
* Arun Jaitley proposed to tax long term capital gains exceeding Rs 1 lakh at 10 per cent without indexation.
* Electronic IT assessment will be rolled out across the country, leading to greater efficiency and transparency: FM
* Mobile phones set to become costlier as custom duty on them has been increased to 20 per cent.
* Health and education cess has been increased to 4 per cent.
* For senior citizens, exemption of interest income on bank deposits raised to Rs 50,000: FM Jaitley
* FM Jaitley proposes to introduce tax on distributed income by equity oriented mutual funds at 10 per cent.
* Standard deduction of Rs 40,000 for salaried employees in lieu of transport and medical expenses: FM Jaitley
* Companies with turnover of up to Rs 250 crore to be taxed at 25 per cent: FM
* Arun Jaitley says that the government does not propose any changes in tax slabs for the salaried class this year.
* FM proposes a fiscal deficit of 3.3% of GDP for 2018-19.
* Finance Minister Arun Jaitley proposes revising emoluments as per the following structure:
— Rs 5 lakh for the President of India
— Rs 4 lakh for the Vice President
— Rs 3.5 lakh for the Governors
* Jaitley also proposes automatic revision of emoluments of Parliamentarians every five years, indexed to inflation.
* We have already exceeded our disinvestment target, announces Arun Jaitley.
Disinvestment target for 2017-18 has been exceeded and will reach Rs 1 lakh crore. Target for 2018-19 is Rs 80,000 crore.
* 5 lakh WiFi hotspots will be set up in rural areas to provide easy internet access.
* Government will take all steps to eliminate use of cryptocurrencies which are funding illegitimate transactions.
* Govt announces Amrut program to focus on water supply to all households in 500 cities. Water supply contracts for 494 projects worth Rs 19,428 core will be awarded: FM
* NITI Aayog will establish a national programme to direct our efforts in the area of Artificial Intelligence towards national development: FM
* Airport capacity to be hiked to handle 1 billion trips every year.
* Arun Jaitley says that 4,000 km of new railway track will be laid down by 2019.
* All railways stations with footfall more than 25,000 to have escalators, says the Finance Minister.
* Mumbai transport receives Rs 40,000 crore.
* The government will undertake redevelopment of 600 major railway stations across the country.
* Arun Jaitley announces capital expenditure of Rs 1,48,528 crore for Indian Railways in 2018-19.
* National Heritage City Development Augmentation Scheme has been undertaken to preserve and protect heritage cities in the country, announces the Finance Minister.
* Government to contribute 12 per cent of EPF contribution for new employees in all sectors: FM
* Infrastructure is the growth driver of economy: Jaitley
* Target of 3 lakh crore for lending under PM Mudra Yojana: FM
* MSME enterprises are a major element for growth, says Jaitley. He also added that mass formalisation of MSME sector is happening after demonetisation and GST.
* Govt will launch health scheme to cover 10 crore poor families, Arun Jaitley says.
* The Government is slowly but steadily progressing towards universal health coverage: FM
* Government aims to bring 60 crore bank accounts under the Jan Dhan Yojana.
* Eklavya schools to be started for Scheduled Tribe populations: Finance Minister
* Rs 600 crore allocated to Tuberculosis patients undergoing treatment.
* Govt will set up two new Schools of Planning and Architecture, says Finance Minister Jaitley.
* To tackle brain drain, Jaitley announces scheme to identify bright students pursuing B Tech in premiere engineering institutes, and providing them higher-education opportunities in the IITs and IISc. These students will receive handsome fellowships, and will be expected to dedicate a few hours to teach in higher education institutions weekly.
* Specialised railway university to be set up at Vadodara.
* Jaitley proposed integrated BEd programme for teachers: “training of teachers during service is essential.” Technology will be the biggest driver in improving the quality of education.
* Budget allocates money for social security and protection programme for all widows and orphaned children.
* We have a target to provide all Indians with their own homes by 2022, says Jaitley.
* Ujjwala scheme to amplify targets, will now provide 8 crore rural women free LPG connections.
* Air pollution in Delhi-NCR has been a cause of concern, govt has proposed subsidised machinery for in-situ management of crop residue in Punjab, Haryana, Uttar Pradesh and NCT Delhi.
* Govt of India will take necessary measures to put in place measures for the state government to purchase surplus solar power produced by local farmers at sutiable prices.
* Arun Jaitley proposes a sum of Rs 500 crore for ‘Operation Green’ on the lines of ‘Operation Flood’.
* Food processing sector is going at an average of 8 per cent per annum.
* We have been saying it for years that India is primarily an agricultural country: Jaitley
* Arun Jaitley on Minimum Support Price of agricultural products: Only increasing the MSP is not enough, the government will fix the MSP of agricultural products at 1.5 times the market rate.
* Our emphasis is on generating higher benefits and productive employment for the farmers: Jaitley while addressing the agricultural sector in his Budget speech 2018.
* Our government has worked sincerely, and without weighing the political costs, hoping that benefits are delivered to people at their doorsteps. The Direct Benefit Transfer system of India is a success story that is reiterated across the world: Jaitley.
* This year’s Budget will particularly focus on agriculture, says Jaitley.
* The finance minister also pointed out that India is one of the fastest-growing economies in the world.
* Indian economy has performed very well since our government took over in May 2014, says Arun Jaitley.
* Arun Jaitey recalls the measures — like GST, FDI, demonetisation, etc. — taken by the NDA government in the past four years that have impacted the economy of the country.
Sensex surges 300 points, closes above 35k-mark for first time
Benchmark Sensex soared over 310 points today to close above the 35,000-mark for the first time ever, while the broader Nifty too ended at a fresh life-time high on unabated buying by participants.
The 30-share Sensex jumped 310.77 points, or 0.89%, to end at a new peak of 35,081.82, breaking its previous record of 34,843.51 reached on January 15.
Intra-day, it climbed to 35,118.61, bettering its previous intra-day high of 34,963.69 reached on January 15. It took 17 sessions for the index to scale the 35,000 mark from 34,000 level reached on December 26.
The broader Nifty surged 88.10 points, or 0.82%, to close at a new peak of 10,788.55, breaking its previous record of 10,741.55 hit on January 15. It also touched an intra-day record of 10,803, surpassing its previous high of 10,782.65 hit on January 15.
Brokers said sentiment got a lift after the government today lowered the additional borrowing requirement for the current fiscal to ₹20,000 crore from ₹50,000 crore estimated earlier.
Foreign portfolio investors (FPIs) bought shares worth a net ₹693.17 crore while domestic institutional investors (DIIs) had sold equities worth a net ₹246.38 crore yesterday, as per provisional data.
According to market observers, optimism around quarterly corporate earnings, along with a surge in banking, healthcare and IT stocks, lifted the equity indices to trade at fresh high levels.
Around 2.45 p.m., the wider Nifty 50 of the National Stock Exchange rose by 59.70 points or 0.56 per cent to trade at 10,760.15 points.
On the BSE, the Sensex traded at 35,023.65 points — up 252.60 points or 0.73 per cent — from its previous session’s close. However, the BSE market breadth was bearish as 1,509 stocks declined against 1,343 advances.
On Tuesday, the benchmark indices closed in the negative zone as sentiments were dampened by higher crude oil prices as well as the country’s widening trade deficit.
The Nifty 50 fell by 41.10 points, or 0.38 per cent to close at 10,700.45 points, while the Sensex closed at 34,771.05 points — down 72.46 points or 0.21 per cent.
The benchmark equity indices gained over one per cent in the morning trading session on Friday as global rating major Moody’s upgraded India’s rating after 14 years. At 10.30 a.m., the 30-share Sensex was trading up 364.20 points or 1.10% at 33,471.02. The broader Nifty was also up 113.30 points or 1.11% at 10,328.05.
The market breadth was strong with 1,701 stocks gaining ground as against only 508 declines. Most of the sectoral indices were also trading in the green.
The United States-based agency upgraded India’s sovereign credit rating by a notch to ‘Baa2’ with a stable outlook. It upgraded the country’s rating to ‘Baa3’ in 2004, while in 2015, only the rating outlook was changed to ‘positive’ from ‘stable’.
“The decision to upgrade the ratings is underpinned by Moody’s expectation that continued progress on economic and institutional reforms will, over time, enhance India’s high growth potential and its large and stable financing base for government debt, and will likely contribute to a gradual decline in the general government debt burden over the medium term,” Moody’s said in a statement.
It, however, cautioned that high debt burden remains a constraint on India’s credit profile.
“Moody’s upgrade comes as a welcome move in the wake of slew of structural reforms in the economy that are expected to enhance the potential growth in the medium term,” said Upasna Bhardwaj, senior economist, Kotak Mahindra Bank.
The United States-based agency upgraded India’s sovereign credit rating by a notch to ‘Baa2’ with a stable outlook. It upgraded the country’s rating to ‘Baa3’ in 2004, while in 2015, only the rating outlook was changed to ‘positive’ from ‘stable’. “The decision to upgrade the ratings is underpinned by Moody’s expectation that continued progress on economic and institutional reforms will, over time, enhance India’s high growth potential and its large and stable financing base for government debt, and will likely contribute to a gradual decline in the general government debt burden over the medium term,” Moody’s said in a statement.
“In the near term, however, given that debt limits are nearly utilised there remains minimal room for a rally in gsec. Further, inflows in equity markets will also increase domestic liquidity,” he said.
Nifty ends at new peak of 10,153.10, Sensex rises 151 points
It also breached intra-day record of 10,137.85 reached on August 2.
The NSE Nifty on Monday closed at record high of 10,153.10 and the Sensex surged by 151 points to end at a six-week high on gains in banking, capital goods and auto stocks after unabated buying by domestic institutional investors amid positive leads from global markets.
Sentiments remained upbeat for yet another session following healthy gains across Asian and a higher opening at European markets, traders said.
The 50-share NSE Nifty closed at all-time high of 10,153.10, up 67.70 points, or 0.67% after shuttling between 10,171.70 and 10,131.30. It broke previous record closing of 10,114.65 hit on August 1.
It also breached intra-day record of 10,137.85 reached on August 2. Reflecting the bullish mood, the NSE Bank Nifty breached the 25,000 mark to hit all-time high of 25,105.35.
The 50-share NSE Nifty closed at all-time high of 10,153.10, up 67.70 points, or 0.67% after shuttling between 10,171.70 and 10,131.30. It broke previous record closing of 10,114.65 hit on August 1. It also breached intra-day record of 10,137.85 reached on August 2. Reflecting the bullish mood, the NSE Bank Nifty breached the 25,000 mark to hit all-time high of 25,105.35. The 30-share BSE Sensex also rose by 151.15 points, or 0.47% to end at 32,423.76, its highest closing since August 2 when it had settled at 32,476.74. During the day, it touched a high of 32,508.06.
The 30-share BSE Sensex also rose by 151.15 points, or 0.47% to end at 32,423.76, its highest closing since August 2 when it had settled at 32,476.74. During the day, it touched a high of 32,508.06.
The gauge had gained 610.64 points in the previous seven straight sessions.
Revival of buying by FPIs, who had been major sellers for a long spell on the Indian bourses, too accelerated the buying pace to some extent, helping the benchmark Nifty to scale new highs, brokers said.
Nifty breaches 10,000 mark, Sensex at new high on fund inflows
Creating history, the NSE Nifty today breached the 10,000 level for the first time while the BSE Sensex hit another record high of 32,374.30 in opening trade led by rally in metal, banking, realty and FMCG stocks.
The 50-issue Nifty breached the historic 10,000 level by gaining 44.90 points, or 0.45 per cent, to trade at all-time high of 10,011.30, surpassing its previous intra-day high of 9,982.05 touched yesterday.
Brokers said sentiment was upbeat on sustained capital inflows and widespread buying by retail investors, driven by strong earnings by some more bluechip companies.
The flagship BSE Sensex too climbed 128.43 points, or 0.39 per cent, to trade at new record high of 32,374.30, breaking its previous record high of 32,320.86 reached in yesterday’s trade. The gauge rallied 341.47 points in the previous two sessions.
Besides, expectations of a rate cut by the Reserve Bank at its meeting next month too bolstered trading sentiments as participants indulged in raising their bets, they said.
Top performers during initial trade were Hero MotoCorpt, Bharti Airtel, HDFC Bank, Tata Steel, Power Grid, ICICI Bank, Kotak Bank, NTPC, Bajaj Auto, SBI, M&M, Dr Reddy’s, Adani Ports and ITC Ltd, rising by up to 1.28 per cent.
The 50-issue Nifty breached the historic 10,000 level by gaining 44.90 points, or 0.45 per cent, to trade at all-time high of 10,011.30, surpassing its previous intra-day high of 9,982.05 touched yesterday. Brokers said sentiment was upbeat on sustained capital inflows and widespread buying by retail investors, driven by strong earnings by some more bluechip companies. The flagship BSE Sensex too climbed 128.43 points, or 0.39 per cent, to trade at new record high of 32,374.30, breaking its previous record high of 32,320.86 reached in yesterday’s trade. The gauge rallied 341.47 points in the previous two sessions. Besides, expectations of a rate cut by the Reserve Bank at its meeting next month too bolstered trading sentiments as participants indulged in raising their bets, they said.
Among other Asian markets, Hong Kong’s Hang Seng index was up 0.09 per cent while Japan’s Nikkei shed 0.13 per cent. Shanghai Composite Index down 0.32 per cent.
Sensex scales another peak of 30,346.69; Nifty at 9,450.65
The BSE Sensex continued with its record setting spree to quote at an all-time high of 30,346.69 while the NSE Nifty scaled a new peak of 9,450.65 in opening trade on sustained fund inflows, largely driven by forecast of a normal monsoon, amid positive Asian cues.
The 30-share index rallied by 98.52 points, or 0.32 per cent, to hit a new peak of 30,346.69, breaking its previous record of 30,271.60 points (intra-day) touched in yesterday’s trade.
The gauge had gained 389.37 points in previous three sessions to close at a record high of 30,248.17 in yesterday’s session.
All the sectoral indices, led by metal, healthcare, auto and banking, were trading in green with gains of up to 1.02 per cent.
The 50-share NSE Nifty gained 43.35 points, or 0.46 per cent, to quote at a life-time high of 9,450.65. The gauge had touched an intra-day high of 9,414.75 in yesterday’s trade.
Major contributors to the key indices were Tata Steel, M&M, Lupin, ONGC, Cipla, Axis Bank, ITC Ltd, ICICI Bank, Sun Pharma, Adani Ports and SBI, gaining by up to 1.42 per cent.
Bucking the trend, shares of India’s largest two-wheeler maker Hero MotoCorp fell 0.38 per cent, to Rs 3,309.90 after the company yesterday registered a 13.86 per cent decline in net profit at Rs 717.75 crore for the fourth quarter ended March 2017.
Brokers said that continued buying by foreign funds as well as retail investors after forecast of a normal monsoon this year lifted the key indices to new highs.
In the Asian region, Hong Kong’s Hang Seng rose 0.23 per cent, while Japan’s Nikkei was up 0.15 per cent in early trade. Shanghai Composite Index, however, was down 0.25 per cent. The US Dow Jones Industrial Average closed 0.16 per cent lower in yesterday’s trade.